Markets
For the week of Monday, Sept. 30, 2013 through Friday, October 4, 2013:
- Standard & Poor’s 500 Index:.-0.04 %
- Dow Jones Industrial Average: -1.18%
- NASDAQ Composite: 0.73%
The U.S. markets tumbled on Monday, capping a day on which investors around the globe sold shares as they braced for a partial U.S. government shut down. Also unsettling investors was the political instability in Italy, where the government is teetering on the brink of collapse. On Tuesday, stocks rose despite the first federal government shutdown in 17 years. Lawmakers failed to reach an agreement to keep the government fully funded to start the new fiscal year. Both the Dow Jones Industrial Average and the S&P 500 shed Wednesday on a disappointing report on private-sector job growth. The ADP jobs report showed the private sector created 166,000 jobs in September, below economist forecasts for 178,000. August’s job-growth figure also discouraged traders, when it was revised down to 159,000 from 176,000. Stocks continued their downward tumble on Thursday, but closed higher on Friday as bargain hunters capitalized on recent price drops. The government shutdown prevented the release of numerous government reports on the economy, including Friday’s scheduled September non-farm payrolls data.
- Chain Store Sales Snapshot:
- The ICSC chain store sales index increased 0.2%.
- Year-over-year growth improved to 2.1%.
- ISM Manufacturing Index:
- The ISM manufacturing index rose from 55.7 to 56.2.
- This was better than expected.
- Production increased from 62.4 to 62.6.
- New orders were above 60 for the second straight month.
- The ISM manufacturing index rose from 55.7 to 56.2.
- MBA Mortgage Applications Survey:
- The MBA mortgage applications survey decreased 0.4% for the week.
- The purchase index fell 5.6%, while the refinance measure rose 3.1%.
- ADP Jobs Report:
- Private-sector employment added 166,000 jobs.
- Analyst expected an increase of 178,000 jobs.
- August’s ADP employment was revised down to 159,000 from 176,000.
- Private-sector employment added 166,000 jobs.
- Jobless Claims:
- Initial unemployment insurance claims increased 1,000 to 308,000.
- The four-week moving average fell to 305,000.
- Claims are now at their lowest since the recession in the spring of 2007.
- Continuing claims fell 104,000 to 2.84 million.
- Factory Orders:
- Factory orders were not posted as a result of the government shutdown.
- ISM Services Index:
- The ISM nonmanufacturing index fell from 58.6 to 54.4.
- New orders are still near 60, after falling less than 1 point.
- New export orders rose seven points to 57.5.
Earnings:
- Paychex, Inc. (NASDAQ: PAYX)
- Paychex’s earnings rose 6%, as human resource revenue rose 11% to $202.7 million.
- Paychex income increased to $162.8 million, or $0.44 a share, compared to $153.1 million, or $0.42 a share, year-over-year.
- Revenue rose 5%, from 578.2 million to $607.9 million.
- Analysts expected $0.43 a share on $605.1 million in revenue.
- The payroll division’s revenue rose 2% to $395.2 million.
- Walgreen Co. (NYSE: WAG)
- Walgreen’s earned $657 million, or $0.69 a share, compared to $353 million, or $0.39 a share, last.
- Revenue rose 5% to $17.94 billion, missing analysts’ expectations of $17.96 billion.
- For the year Walgreen’s earned $2.45 billion, or $2.56 a share, and $72.22 billion in revenue.
- Constellation Brands Inc. (NYSE: STZ)
- Net income was $1.52 billion, or $7.74 a share, compared to $124.6 million, or $0.71 a share, one year ago.
- Excluding one-time items, Constellation earned $0.96 a share.
- Net sales increased to $1.46 million over $698.5 million last year.
- Net income was $1.52 billion, or $7.74 a share, compared to $124.6 million, or $0.71 a share, one year ago.
- Despite the government shutdown, rates were stable this week.
- The two-year Treasury rates fell one basis point to 0.32%.
- The five-year Treasury rate fell about two basis points to 1.39%.
- The 10-year Treasury rate stayed at 2.63%.
- The 30-year Treasury yield rose two basis points higher to 3.71%.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
